York businesses consider turnover or for profit dilemma (From York Press)

York businesses consider turnover or for profit dilemma at The Alternative Board meeting

11:58am Tuesday 20th April 2010 in Business news By Ron Godfrey

BUSINESSES in York have reached a crucial stage as the economy begins to turn.

Their dilemma? To go for turnover or for profit? In other words, to sell more for less, or less for more?

The conundrum has been exposed after the first meeting of The Alternative Board (TAB) in York.

Representatives from numerous sectors in York and North Yorkshire, including insurance, accountancy, events management, organisational development, personal coaching, engineering and publishing all seemed to be faced with this pricing decision.

The meeting, at Forest Farm Business Park, Fulford, was chaired by Ed Reid, who is described as facilitator and coach of the organisation, which for a fee brings together owners of small ventures to share best practice and act as each other’s non-executive directors.

He said: “The solutions on pricing vary from business to business and sector to sector. Much depends on their strategic goals.

“But one guide is to go for turnover if you are in it for the long term and in a position to gain market share and oust the opposition.

“Those who are more focused on their own immediate bottom line will price higher accordingly, but with care not to price themselves out of the market – a delicate balance, which requires research and guidance.”

TAB has been operating successfully in the US and Canada for the past 25 years, but recently began in the UK in Harrogate.

Now Mr Reid has begun his own version for York and North Yorkshire. Having formed the group that had its first board meeting, he is now assembling three other groups in the region, each distinguished by size and complexity.

He said: “It would be unproductive to work with a £200,000 turnover venture alongside a £10 million group. There is just not enough common ground.”

Each group has a monthly, confidential board meeting with up to ten business owners. Their collective business experience is brought to bear in solving individual firms’ problems.

Separate coaching sessions are arranged between the Alternative Board member and Mr Reid, who has worked for several large corporates, including Nestlé in York, where he ran the national sales team, and for small and medium-sized private companies.

He said: “The purpose of these coaching sessions is to help the business owner overcome the barriers faced in implementing the TAB’s advice.

“Every decision taken by people at the top is often without a sounding board or someone to support or counter their instincts. Many of them are crying out for accountability.

“People spend a lot of time in a business on the things they enjoy doing and avoiding a lot of the things they don’t enjoy doing. TAB gives them that accountability. There is no way they can avoid the essentials.”